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  • FIRST POST
    • iwanttobeatdebt
    • By iwanttobeatdebt 15th Sep 18, 3:18 PM
    • 1Posts
    • 3Thanks
    iwanttobeatdebt
    deleted
    • #1
    • 15th Sep 18, 3:18 PM
    deleted 15th Sep 18 at 3:18 PM
    Deleted Deleted Deleted
    Last edited by iwanttobeatdebt; Yesterday at 11:51 PM. Reason: deleted
Page 1
    • Willing2Learn
    • By Willing2Learn 15th Sep 18, 3:26 PM
    • 1,441 Posts
    • 1,092 Thanks
    Willing2Learn
    • #2
    • 15th Sep 18, 3:26 PM
    • #2
    • 15th Sep 18, 3:26 PM
    Hi,

    Please reconsider your decision to get a consolidation loan as it often leads to a worse position with increased level of debt. Have a read of the thread linked below:

    https://forums.moneysavingexpert.com/showthread.php?t=5567669

    And please, please don't take up the option of a secured loan. That could be a recipe for disaster.

    Why not post up your Statement of Affairs (SOA)? With an SOA people can give you targeted advice on how to manage your debt. If you do decide to post your SOA, then please click on the 'format for MSE' button at the bottom of the form.

    http://www.stoozing.com/calculator/soa.php

    Have you tried contacting any of the free Debt Counselling Services, such as StepChange, for professional advice on your debts?
    Last edited by Willing2Learn; 15-09-2018 at 3:29 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • DCFC79
    • By DCFC79 15th Sep 18, 3:34 PM
    • 32,543 Posts
    • 20,476 Thanks
    DCFC79
    • #3
    • 15th Sep 18, 3:34 PM
    • #3
    • 15th Sep 18, 3:34 PM
    However you look at it you are adding to your current debt, its how the lenders see it, they see it as a risk.


    There's no guarantee you will use the new loan as you say.
    Look at your spending and cut back.


    Don't turn unsecured loan into a secured loan, your home would be at risk if you do.


    You could consolidate and 2 years later you could be back in an even worse position.
    Last edited by DCFC79; 15-09-2018 at 3:36 PM.
    • worriedDan
    • By worriedDan 15th Sep 18, 3:34 PM
    • 230 Posts
    • 714 Thanks
    worriedDan
    • #4
    • 15th Sep 18, 3:34 PM
    • #4
    • 15th Sep 18, 3:34 PM
    HI,

    I am not really in a position to offer financial advice, however I can give you my take on your situation...

    Consolidating didn't work for me, in fact It actually made it worse. I consolidated many times over the years, only to then use the newly paid of credit cards and re accumulate the debt! this meant that I wasn't back to square one - I was actually owing more than I started out with! I owed over 60K at my worst point. My first consolidation loan was for £7000 back in 2007 - this shows you just how much my debts spiraled over a decade.

    Based on what you have told us, it looks unlikely that you are going to get a loan for 38K. Each application that is declines also negatively affects your credit rating.

    Like you, I have chosen to not use my house equity. This is our security. and the general rule is to not turn unsecured debt into secured.

    It would useful if you could post a full SOA as this would help us to see the full picture, Can you at least share your income and outgoings and cost of minimum debt payments. You can access the SOA calculator at http://www.stoozing.com/calculator/soa.php

    I am making progress with my debts using the snowball method - paying as much off the highest interest card until it is cleared. I pay minimums, plus £1 on everything else. Once that debt is cleared I move on to the next highest interest debt. I have also had 0% offers from my existing credit cards. I know it's scary, but don't feel too trapped by your interest rates.

    I wish you well on your journey
    • Willing2Learn
    • By Willing2Learn 15th Sep 18, 4:28 PM
    • 1,441 Posts
    • 1,092 Thanks
    Willing2Learn
    • #5
    • 15th Sep 18, 4:28 PM
    • #5
    • 15th Sep 18, 4:28 PM
    How come you spend so much on your mobile and TV? Even if you are including line rental and broadband in with your TV, that would still be too high.

    Also there is no spending holidays, entertainment and haircuts. Is that correct or are you missing these out?

    Additionally, there needs to be an amount for car maintenance.

    Maybe some of the above is because the SOA doesn't include your wife. Ideally you want this to be a joint SOA for the best advice. That way, you can calculate your monthly budget properly.
    Last edited by Willing2Learn; 15-09-2018 at 4:30 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • DCFC79
    • By DCFC79 15th Sep 18, 4:29 PM
    • 32,543 Posts
    • 20,476 Thanks
    DCFC79
    • #6
    • 15th Sep 18, 4:29 PM
    • #6
    • 15th Sep 18, 4:29 PM
    Are you finding you have over £1000 left once bills excluding cards are paid for ?


    You could pay more off the Lloyds account if you increase your payment.
    • sourcrates
    • By sourcrates 15th Sep 18, 4:40 PM
    • 15,242 Posts
    • 14,340 Thanks
    sourcrates
    • #7
    • 15th Sep 18, 4:40 PM
    • #7
    • 15th Sep 18, 4:40 PM
    Hi,


    Your story is all too familiar, living beyond your means, by relying on credit to plug the gaps, eventually the 0% deals run dry, then you try to consolidate, some manage it, some don`t, these are all well rehearsed, moves in the same dance every debtor does when trouble appears on the horizon, Ive been there, most on this forum have been there too.


    You need to pop the credit bubble first off, stop thinking that you can still borrow your way out of debt, because you can`t, it never works, even if you could borrow it, most folk just run up the debts again as Dan explains above.


    Your options are more limited as a home owner, debt management is about the only other option if you cannot snowball your debts, you appear to have a reasonable income, its not beyond the realms of possibility to be able to clear that within 6 years if all interest and charges were stopped, and you had a workable budget.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • barbarawright
    • By barbarawright 15th Sep 18, 4:42 PM
    • 1,726 Posts
    • 3,307 Thanks
    barbarawright
    • #8
    • 15th Sep 18, 4:42 PM
    • #8
    • 15th Sep 18, 4:42 PM
    Do you really feed two adults on £100 a month? That's very impressive
    • enthusiasticsaver
    • By enthusiasticsaver 15th Sep 18, 4:50 PM
    • 7,040 Posts
    • 15,219 Thanks
    enthusiasticsaver
    • #9
    • 15th Sep 18, 4:50 PM
    • #9
    • 15th Sep 18, 4:50 PM
    Firstly you need to be honest with yourself as to how you have got to that level of unsecured debt. You also need to talk to your wife if she is unaware you have that amount of borrowing.

    If you have got to the stage of not being able to get any moved to 0% deals then realistically you will not get a consolidation loan at a decent rate of interest if at all and it will not help you clear the debt unless you change your spending patterns. Are you still using the cards? If so, this is the first thing which must stop and you start living within your income.

    Moving unsecured debt to secured is extremely unwise.

    There is scope to reduce costs on mobiles, tv package but there are gaps in your soa you have not allowed for. There is no allowance for entertainment, car maintenance, haircuts, gifts etc and you definitely need an emergency savings account to stop you keep reaching for a credit card when something needs paying for.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • January2015
    • By January2015 15th Sep 18, 5:01 PM
    • 2,194 Posts
    • 5,349 Thanks
    January2015
    Hi

    Well done on posting your SOA. Just a note from me - I consolidated my credit card and overdraft debts twice. All I did was make my situation worse because I never learnt to live within my budget. I had £95k unsecured debts when I realised something had to change and found this forum and the wonderful life that we have on our DMP.

    I know you are looking at your figures now, but seriously, please do not consolidate your existing debts into a loan.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • zippygeorgeandben
    • By zippygeorgeandben 15th Sep 18, 5:31 PM
    • 913 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Please don't consolidate. Consolidate sounds like a word to enable 'security' however in reality it's just adding to your debt. Also, you need to ask yourself whether you have the necessary financial maturity to pay off an extra debt. I think you know the answer to that.
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • Vikipollard
    • By Vikipollard 15th Sep 18, 6:38 PM
    • 637 Posts
    • 1,119 Thanks
    Vikipollard
    So...are you seriously saying you have a £15000 "hobby" car and you pay £100 a month for lunch...?

    There's £15k off your debt straight away by selling it.

    You can also start taking lunch with you and throw the £100 a month at the Lloyds card.

    Get rid of the Sky package.

    Downgrade your phones.

    Yes, I am being harsh, but these are luxuries you don't need, you want.
    LBM July 2006. Debt free 01 Sept 12 ..
    Finally joined Slimming World: weight loss 33lbs...target achieved 51wks later 06.05.13 & still there
    Aim to be mortgage free in 2022. Jan 17 33250, Nov 17 27066 Mar 18 24498 Sep 18 20608
    • Dobbibill
    • By Dobbibill 15th Sep 18, 7:00 PM
    • 3,300 Posts
    • 4,225 Thanks
    Dobbibill
    Hi - Welcome to the forum.

    I agree with others, consolidation is not the way to go.

    A few things jump out to me on your SOA.

    You've said your wifey buys the groceries - what other contribution is she making? Does she have an income to pay some of the household bills? If you really want to do this on your own then not paying all the bills alone would help your debt busting.

    Does 'wifey' pay for the mortgage?

    You could change both the Council Tax & Water Rates to 12 monthly payments instead of the standard 10. This would free up more money each month towards your debts. It would mean you don't get your 'free months' though.

    Energy costs are good - do you regularly submit meter readings and compare to switch to a cheaper provider - you don't want to get caught out with high bills in the winter.

    Speak to your mobile phone & internet provider, you are paying way too much there. If you are nearing your contract renewal date, look at SIMO deals.

    Start making packed lunch for work - that £100 could be going towards your debt.

    You have to buy clothes occasionally, even if it's only new underwear so account for it, even if it's only a few quid each month.

    When your car and home insurances are due for renewal, look at using cashback sites like TCB or Quidco to make a net saving.

    Do you really never buy birthday or Xmas presents? Again, even if it's only something for a few quid you need to account for it.

    If you pay EG- £12 a year for haircuts, then £1 pm needs to be included. As does the 'entertainment' category.

    Unless your wife has this covered, you need to be looking at putting something in an emergency fund. Without this, the smallest crisis will set you back by scrambling to find funds to cover it. That's when most people turn back to credit cards.

    A few tweaks to your SOA and this is do-able on the snowball method. Although it will be tough making the lifestyle changes to start with, it will become the norm quite quickly.

    All the best.
    Last edited by Dobbibill; 15-09-2018 at 7:33 PM.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • Sncjw
    • By Sncjw 15th Sep 18, 7:26 PM
    • 1,915 Posts
    • 1,125 Thanks
    Sncjw
    They reason they rejected you is because you are adding to your debt. Consolidation loans are doubling your debt. They are assessing you on affordability for £76,000 not £38,000.

    You need to do a better soa including your wife’s finances as I imagine the debt is from buying things for the household.
    • nrsql
    • By nrsql 15th Sep 18, 7:42 PM
    • 1,799 Posts
    • 608 Thanks
    nrsql
    Mobile phone - £128?
    Mine is £5. I could afford more but that’s all I need.
    Consider reducing at end of contract and get a payg or giffgaff if you’re getting close to the cap.

    Satellite/ cable £102.
    Drop multiroom. Decide what you need for tv.
    You could get 4 months free by trying Netflix then now tv. Maybe longer with offers. Depends on what you have now but think about what you can do without. Could be that, if you negotiate, it’s a choice between dropping it entirely.
    You could stop live tv and drop the tv licence and use the interaction with the licensing authority as replacement entertainment. (Not really serious).

    Get rid of the car. That’s £15,000 plus £80 a month. Better than consolidating? Buy another when you can afford it - then it will be yours and you can be proud of it - you are basically borrowing it at the moment. Think about how much it would cost to rent one occasionally and whether you would do that.

    How long have you been at this level I.e. living within your means. If it’s just a short time you should be concerned about whether consolidating will just give you an excuse to build up more debt. It’s always easy to find a justification. That’s from personal experience, you might be different but get some evidence before relying on it.
    You could consider taking and recording a loan from your wife if you are serious about paying this off. Better would be to look at all the finances as some are joint and you are maybe missing savings that could be made.

    When was the last time you used a credit card?

    I’m not suggesting you should consider securing on your house but if you think about it in terms of total debt you are already in negative equity, you have transferred money from credit cards to the mortgage. I suspect you don’t want to secure it because you aren’t sure you can keep to the plan.
    Last edited by nrsql; 15-09-2018 at 7:47 PM.
    • nrsql
    • By nrsql 15th Sep 18, 8:15 PM
    • 1,799 Posts
    • 608 Thanks
    nrsql
    Are you paying £88.09 off the MBNA card every month? How long have you been doing that.

    Also, try that snowball calculator after paying £15,000 off the MBNA and Lloyd’s cards and applying the extra £80 a month.

    Also keep a spreadsheet of the interest amounts as well as the payment amounts for each card so you can see what’s happening and what effect payments will have.
    • Teamocil
    • By Teamocil 15th Sep 18, 8:57 PM
    • 53 Posts
    • 22 Thanks
    Teamocil
    Be honest, nothing anyone here says will make you get rid of the car and dramatically improve the situation overnight.,
    • theoretica
    • By theoretica 16th Sep 18, 12:18 AM
    • 5,325 Posts
    • 6,637 Thanks
    theoretica
    Did you read above? itís not a familly saloon we are talking about that I can just run down to we buy any car to get some quick cash. It is for sale, Itís a heavily modified car it will appeal to a small number of people, an even smaller amount of which will actually have £15k in cash to take it away. So no it isnít going to sell and make my problems go away overnight...
    Originally posted by iwanttobeatdebt

    When you are selling, it is only worth what someone can and will pay and you need to balance the price against the time taken waiting for a buyer. Having that £15k debt not paid off is costing you about £250 a month, so selling it now for £14k would be financially equal to selling it in 4 months for the full £15k. Or selling it now for £12k would be equal to selling it in a year for £15k. Not to mention insurance etc and anything else that goes wrong with it.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • enthusiasticsaver
    • By enthusiasticsaver 16th Sep 18, 12:28 AM
    • 7,040 Posts
    • 15,219 Thanks
    enthusiasticsaver
    OK the car is problematic but presumably you can SORN it and save yourself £130 a month plus the money you have been spending out on maintenance. Make packed lunches and as soon as the mobile contracts are up move to SIM only and reduce the sky contract asap. Try and sell the car asap and snowball as much as possible. 19 months would be great but I guess you may have to accept less for the car than £15k to sell it quicker.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • nrsql
    • By nrsql 16th Sep 18, 12:44 AM
    • 1,799 Posts
    • 608 Thanks
    nrsql
    Be encouraged that it’s a disposable asset which could enable you to be debt free in a short time.
    When you get an offer you can decide whether you would get more pleasure from the car or the reduced time clearing debt.
    If you take it up, after you clear debts you can then use the £1000 a month to save to buy another car and then start modifying it, hopefully this time within your budget. But by then you might have other priorities.

    Hopefully your income will increase and if you stick to the plan the debt free date will be a lot earlier than you are calculating now.

    Best of luck anyway.
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